Canadians are deeply unhappy with their full-service investment firms according to a new study from J.D. Power, the global marketing information services company.
The study found that 32% of investors said their advisor did not take the time to explain their portfolio performance during the past year. Investors not receiving an advisor explanation are almost twice as likely as those who received an explanation to indicate their financial performance was "worse than expected" and were significantly less satisfied with both that performance and their advisor.
The survey also found that older investors are more concerned about their financial wellness, with 16% of pre-boomers and boomers indicating that they are "worse off" financially than they were a year ago, up from 9% in 2018.
Understanding the fees investment firms charge also remains elusive. Despite 48% of investors indicating that they have noticed changes in the information provided by their firm due to new reporting and disclosure rules that came into effect in 2017, the percentage of those who say they have a "complete" understanding of fees remains low at 31%, down from 32% last year.
The decline in the latest J.D. Power survey represents the first time since the 2008 financial crisis that Canadians’ satisfaction levels have dropped. The study cites volatile financial markets, particularly at the end of 2018, and poor returns for the decline in sentiment.
The top ranked Canadian investment firms in terms of customer satisfaction, according to J.D. Power, are as follows:
Edward Jones
Assante
BMO Nesbitt Burns
CIBC Wood Gundy
Raymond James
Desjardins
National Bank
RBC Dominion Securities
TD PIA
Scotia McLeod
Manulife
IG Wealth Management
Credential
Sun Life Financial
iA (HollisWealth)
